Crypto funds kick off 2024 with substantial inflows exceeding $150 million in the initial week, driven by anticipation of a potential approval for a spot Bitcoin ETF by the U.S. securities watchdog.
Inflows Dominated by U.S. Exchanges:
U.S. Leads with 55% Inflow
Coinshares' report reveals U.S. exchanges taking the lead in the first week's inflow at 55%, despite the absence of a launched Bitcoin ETF. Germany and Switzerland follow at 21% and 17%, respectively.
Total Inflows Hit $151 Million:
Digital Assets Gain $151M Inflows
According to the latest data, digital asset investment products witness a robust inflow of $151 million in the first week of 2024. This contributes to a cumulative inflow of $2.3 billion since Grayscale's victory over the SEC, representing 4.4% of the total assets under management (AuM) for major asset managers like CoinShares, Grayscale, Bitwise, ProShares, and 21Shares.
Bitcoin Leads Inflows:
Bitcoin-Based Products Top $113M
Bitcoin-based investment products secure the majority share of inflows at $113 million, constituting 3.2% of AuM over the last nine weeks. Ethereum, with $29 million in inflows, brings the total to $215 million over the same period.
Altcoins Experience Varied Performances:
Solana Struggles, While Cardano, Avalanche, and Litecoin Shine
Solana faces outflows of $5.3 million in the first week. Conversely, Cardano, Avalanche, and Litecoin witness notable inflows of $3.7 million, $2 million, and $1.4 million, respectively.
Short-Bitcoin Outflows and Net Impact:
Short-Bitcoin Outflows Reach $1M
The first week sees short-bitcoin outflows of $1 million, contributing to a net outflow of $7 million over the last nine weeks.
Despite overall positive inflows, Solana's early struggle with outflows and short-bitcoin outflows hint at the market's nuanced challenges and potential uncertainties.